Chile: The vast lithium industry in Chile will be put under government control in an effort to boost the economy and safeguard the environment, according to an announcement made on Thursday by President Gabriel Boric of Chile.

The government would not terminate current contracts, but companies should be open to state participation before their contracts expired, according to Boric, who also noted that future lithium contracts would only be issued as public-private partnerships under state control.

"This is our best chance at making the switch to a developed, sustainable economy. The Chilean president said in a televised speech to the country, "We can't afford to waste it.

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The largest lithium reserves in the world are found in Chile, which is also the second-largest producer of the metal worldwide. For the majority of consumer electronics and electric vehicles (EVs), lithium-ion batteries are essential.

Lithium is also regarded by the United Nations as a "pillar for the fossil-fuel free economy" and is the main energy storage material for future clean power grids.

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The move by the Chilean government presents a fresh obstacle for international EV producers, who have been rushing to secure battery materials as nations fight to preserve their natural resources.

Governments in the Lithium Triangle's neighbouring nations, Chile, Argentina, and Bolivia, have been seeking a larger public sector stake in the mining of the metal in order to create their own lithium battery industries.

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Mexico nationalised its lithium reserves last year, and Indonesia has prohibited the export of nickel ore, another essential component of batteries